Q.- What is Demat Account ?
Ans.- A Demat or dematerialize account is an account which is required for holding shares or securities of any other nature in electronic form instead of paper format. An investor purchases and sells securities through the Trading Account and after T+2 days the securities are transferred to the Demat Account.
Q.- What is Trading Account ?
Ans.- Trading account is an account which is required for execution of purchase of listed securities in the Indian stock market. A bank account is linked with your Elite trading account and the holder of the elite trading account can transfer the funds directly into his/her trading account via net banking from his/her account. On having the clear balance in your trading account you can buy shares, which further gets transferred to your demat account with elite wealth advisors ltd.
Q.- Is it compulsory for every investor to open a beneficial owner (BO) A/c to trade in the capital markets ?
Ans.- As per the available statistics at BSE and NSE, 99.9% transactions take place in dematerialised mode only. Therefore, in view of the convenience of trading in dematerialised mode, it is advisable to have a beneficial owner (BO) account for trading at the exchanges.
Q.- Can multiple accounts be opened ?
Ans.- Yes. An investor can open more than one account in the same name with the same DP and also with different DPs. For all the accounts, investor has to strictly comply with KYC norms including Proof of Identity, Proof of Address requirements as stipulated by SEBI and also provide PAN number. The investor has to show the original PAN card at the time of opening of demat account.
Q.- Does the investor have to keep any minimum balance of securities in his account ?
Q.- Can someone else operate the account on behalf of the BO on the basis of a power of attorney ?
Ans.- Yes. If the BO authorises any person to operate the account by executing a power of attorney and submit it to the DP, that person can operate the account on behalf of the BO.
Q.- Why benefits do I have for choosing Elite as my Broker ?
Ans.- Benefits and Key Features of Elite’s Demat and Trading Account:
- Delightful trading experience with seamless transition between Trading, Demat and Bank accounts
- Trade in Equity, Commodity, Derivatives and Currency
- 24-hours access to the account on all days
- Buy Today Sell Tomorrow (BTST) facility
- Excellent Research and advisory team
- Online Trading from anywhere
- Lifetime Free Demat Account
- Online IPO & Mutual Funds
- Dedicated Customer Care
- Low Brokerage Plans
- Free Research Calls
- Call n Trade Facility
- No AMC Charges
- Now Trade from Mobile
Q.- How can one convert physical holding into electronic holding i.e. how can one dematerialise securities ?
Ans.- In order to dematerialize physical securities one has to fill in a DRF (Demat Request Form) which is available with the DP and submit the same along with physical certificates that are to be dematerialized. Separate DRF has to be filled for each ISIN. The complete process of dematerialization is outlined below:
- Surrender certificates for dematerialization to your DP.
- DP intimates to the Depository regarding the request through the system.
- DP submits the certificates to the registrar of the Issuer Company.
- Registrar confirms the dematerialization request from depository.
- After dematerializing the certificates, Registrar updates accounts and informs depository regarding completion of dematerialization.
- Depository updates its accounts and informs the DP.
- DP updates the demat account of the investor.
Q.- Can electronic holdings be converted back into physical certificates ?
Ans.- Yes. The process is called rematerialisation. If one wishes to get back his securities in the physical form he has to fill in the RRF (Remat Request Form) and request his DP for rematerialisation of the balances in his securities account. The process of rematerialisation is outlined below:
- Make a request for rematerialisation.
- Depository participant intimates depository regarding the request through the system.
- Depository confirms rematerialisation request to the registrar.
- Registrar updates accounts and prints certificates.
- Depository updates accounts and downloads details to depository participant.
- Registrar dispatches certificates to investor.